As we are getting out of COVID-19 blues, Auto sales are seen to be recovering well across segments. Pent up demand and easing of lockdown are expected to help sales numbers. In the month of August, recovery in rural markets is expected to aid Auto sales especially for 2-Wheller and Commercial Vehicle segments.

The Demand for Passenger Vehicle still holds strong but Semi-Conductor shortage continues to impact the supply side for Passenger Vehicles and thus hampering growth. While, for tractors it could be a soft month due to seasonal effect on demand from Agri. side but commercial demand is seen to be picking up.

Overall, demand reflects an initial sign of recovery in the trailing segments (2W and CV) and PV demand continues to be strong. This time as well the exports-oriented companies are expected to perform relatively better. 

But as we step into the festive season, demand is expected to accelerate, however supply chain related issues could persist. Semi-conductor shortage is expected to impact the PV segment the most whose inventory level is quite low as of now and demand is holding strong.

For tractor segment a patchy monsoon might hit some sentiment in the short run but strong rural sentiment should provide some support. For 2W, inquiry level is seen to be improving with more of that for Electric models. In CV Space, rural sentiment is expected to provide push with good recovery expectation by H2FY22.